Why proper feasibility studies, training, market proximity are crucial before venturing into agribusiness

By Chi Tola Roberts

In recent years, Nigeria has witnessed a surge of interest in agribusiness as more entrepreneurs recognize its vast potential to drive economic growth, ensure food security, and create employment.

However, beneath this surge lies a sobering reality—many agribusiness ventures fail within the first few years due to a lack of adequate preparation. One of the most common pitfalls is the neglect of critical pre-investment steps such as feasibility studies, proper guidance, technical training, and strategic site selection, especially regarding market proximity.

While agriculture may seem straightforward—plant, grow, harvest, and sell—the reality is far more complex. Agribusiness is not just about farming; it’s a business, and like any business, it demands knowledge, planning, and strategy.

Agribusiness involves a wide range of activities including production, processing, storage, logistics, marketing, and value addition. Each stage requires specific expertise and deliberate planning to ensure profitability and sustainability.

The Cost of Jumping in Unprepared

Many Nigerian entrepreneurs, driven by passion or the lure of quick profits, plunge into agribusiness with little to no understanding of the terrain. Some lease or buy large expanses of land, purchase equipment, and hire labor—all without conducting a feasibility study to assess the economic, technical, and operational viability of the project.

The consequences?

Wasted capital on crops or livestock unsuitable for the soil or climate.

Low yields due to lack of knowledge about improved farming practices or pest control.

Post-harvest losses because of poor storage and inadequate access to markets.

Frustration and eventual abandonment of farms when the business doesn’t deliver the expected returns.

These challenges can be avoided or significantly reduced if entrepreneurs first invest in the right foundation.

Feasibility Studies: The Roadmap to Success

A feasibility study is not a luxury—it’s a necessity. It helps answer vital questions like: What crops or livestock are best suited for the land and climate?

What is the demand for these products?

Who are the competitors and what are their strengths?

What are the estimated costs and potential returns?

What infrastructure is needed?

How close is the farm to its market?

This study provides a roadmap and helps investors make informed decisions rather than gambling with their resources. Without it, agribusiness becomes a shot in the dark.

Training and Mentorship: Building the Right Skillset

Agribusiness involves technical operations that require a specific skill set—from soil testing and land preparation to irrigation, pest control, and post-harvest handling. Relying solely on traditional knowledge or assumptions is a major risk.

Training equips entrepreneurs with:

Modern farming techniques and technologies.

Business management skills.

Knowledge of value addition and processing.

Insights into marketing and sales strategies.

Moreover, mentorship from experienced agripreneurs can help new entrants avoid common pitfalls and shorten their learning curve.

The Strategic Advantage of Proximity to Market

One often overlooked yet critical factor in agribusiness success is proximity to the market or consumers. Where your farm is located about your buyers can make or break your business.

Why does this matter?

1. Reduced Transportation Costs: Long distances between farms and markets increase transportation costs, which eat into profit margins.

2. Minimized Post-Harvest Losses: Many crops—especially perishables like tomatoes, vegetables, or fruits—have a short shelf life. Farms located far from processing centers or final consumers risk high spoilage before products reach the market.

3. Quick Response to Market Demand: Being near the market allows farmers to respond swiftly to demand trends, adjust pricing competitively, and build stronger relationships with buyers.

4. Ease of Logistics and Distribution: Closer proximity means better access to road networks, storage facilities, and distribution channels—factors that enhance efficiency.

5. Better Integration into Value Chains: Agribusinesses closer to urban centers or industrial clusters are more likely to integrate into larger value chains—supplying hotels, processors, exporters, or supermarkets.

Real-Life Scenario

Consider two farmers growing plantains—one in a remote village over 100km from a major town and the other 20km away from a city with active markets and processors.

Even if both have the same yield, the farmer closer to the city can sell faster, preserve quality, reduce transportation costs, and explore value-added options like plantain chips production.

Over time, this proximity translates to better margins, reduced waste, and a more sustainable business model.

Actionable Steps for Aspiring Agripreneurs

If you’re considering venturing into agribusiness, here are practical steps to help you start on the right path:

1. Conduct a Thorough Feasibility Study:

Don’t rely on assumptions. Hire a professional or engage with agricultural extension officers to help evaluate the viability of your intended agribusiness.

2. Get Trained

Seek training opportunities from:

Government agricultural agencies

Agricultural research institutions

NGOs and agribusiness hubs

Online platforms and short courses

3. Seek Mentorship

Identify someone who has succeeded in your field of interest and learn from their experience.

4. Choose Your Location Wisely

Don’t just go for the cheapest land. Assess proximity to markets, infrastructure, and logistics.

5. Start Small and Scale Gradually

Test your business idea on a smaller scale before expanding. This reduces risk and enhances learning.

6. Network and Collaborate

Join agricultural cooperatives or agribusiness forums to gain access to funding, bulk inputs, and markets.

Final Thoughts: It’s Time for Smart Agribusiness

Agriculture is a goldmine, but only for those who treat it as a serious business. The narrative of agribusiness failure in Nigeria can be changed if more entrepreneurs understand the value of data-driven decisions, skills acquisition, and strategic location.

Let’s build a new breed of agripreneurs—one that thrives not on blind optimism, but on preparedness, discipline, and innovation.

Because in agribusiness, success doesn’t happen by chance—it happens by design.